Dangote Refinery Becomes Sole Supplier of Jet A1 Fuel to Air Peace, Other Airlines in Nigeria
- The federal government has authorised Dangote Refinery to act as the only supplier of jet fuel to Nigerian airline operators
- This is as the airlines across the country designated the refinery as the only supplier of jet fuel for the aviation industry
- The aviation minister said the step is appropriate given that Dangote and the FG just launched naira-for-crude agreement
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Dangote Refinery has been granted permission by the federal government to serve as the exclusive provider of jet fuel to airline operators in Nigeria.
Source: Getty Images
Festus Keyamo, the minister of aviation and aerospace development, made this known on Tuesday, October 8, 2024 in an interview with Channels TV.
Keyamo disclosed that the airline operators had decided to designate the 650,000 barrels per day refinery as the only supplier of jet fuel for the aviation industry, with his support and agreement.
He pointed out that the action is timely given that Dangote and the federal government recently implemented a naira-for-crude arrangement.
Less strain on forex
The minister said that this arrangement will lessen the strain on Nigeria's foreign exchange.
“The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.
“You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all naira, no dollar component,” Keyamo said.
According to Keyamo, aircraft operators would be protected from the effects of changes in the price of crude oil by obtaining their fuel from Dangote, which would ultimately result in lower operating expenses.
“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market.
“It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo said.
CEO lists reasons for hike in petrol prices
Legit.ng earlier reported that Robert Dickerman, CEO of Pinnacle Oil & Gas Limited, advised the federal government to address economic distortions and international investors' confidence to reduce the country's pump price of fuel.
His advice came amid rise in petrol price despite supplies from Dangote Refinery. Dickerman asked Nigerians to reduce their expectations that the Dangote Refinery would bring substantial reductions in petrol prices in the country.
He also ascribed the rising cost of petrol and other commodities in Nigeria to the devaluation of the local currency.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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